Q1 2024 Treasure Global Inc Earnings Call
Good day, everyone and welcome to Treasure Global Inc. Fourth quarter of fiscal year 'twenty 'twenty four results conference call like.
At this time participants are in listen only mode.
This conference call is being recorded.
A replay of today's call will be available on the Investor Relations section of T. G. L website and will remain close to death for the next 30 days.
I will not hand over hand, the call over to each of you a basket senior account director of Investor Relations at Casey S. A for introductions and the reading of the Safe Harbor statement. Please go ahead.
Thank you operator, good morning, everyone and welcome to treasure Global first quarter fiscal 'twenty 'twenty Four result conference call with US on today's call are some two chief Executive Officer, Michael Chang, Chief Financial Officer, and Jeremy Rub It independent director.
Before we begin I'd like to remind you that this call contains certain forward looking statements from treasure Global's management made within the meaning of section 27, a of the securities box of 1933 as amended and section 21 E of the Securities and Exchange Act of 1934 as amended concerning.
Future events.
Words, such as May should project.
<unk> intends plans believes anticipates hopes estimates and variations of such words and similar expressions are intended to identify forward looking statements.
These statements are subject to numerous conditions, many of which are beyond the control of the company, including those set forth in the risk factors section of the company's Form 10-K for the year ended June 30, 2023 and subsequent filings filed with the SEC copies of these documents are available on Sec's website at southern.
W. W Dot FCC dot Gov.
Actual results may differ materially from those expressed or implied by such forward looking statements. The.
The company undertakes no obligation to update these statements for revisions or changes after the date of this call except as required by law now it is my pleasure to introduce them to you.
T O a T G L.
Ma'am. Please go ahead.
Thank you Sofia and thank you everyone for joining us today on our first quarter fiscal 'twenty before the next conference call for the period and that's something.
So they treat I'm pleased to speak to you today to provide an update on Churchill Grubhub piece, that's before covering our first quarter operational highlights I wanted to discuss some of the best I think visa innovation, we have announced our key revenue stream as well as new market opportunity.
Post quarter end.
We are confident we will drive revenue and build value for shareholders.
We have continued to prove our capability as a dynamic technology solutions company.
But as far as shifting consumer demand.
Sure we are in.
Gosh with recent market trends, helping to further drive market share.
Firstly, our Peter often Zacks GP.
Our unique ecosystem that transform and simplify the E payment speed and for consumer while also allowing them to read.
October we announced the introduction of an artificial intelligence robot true acquisition.
The technology off kind of set the.
The robotic combat.
Last chromous session on Big part, we use Oh, it's actually be up.
And then more street protests and slightly especially in real time on that ticked off platform. This innovative pushed to marketing not only catch up.
One of the Big top community, but also create a dynamic.
It's choppy I should be therefore be almost the rope, okay I'm sorry carry on.
All right product to offer personalized recommendation and shrink that every customer interaction is paid into that niche.
Is that ability to operate for our kicked off.
A game changer in the life homeless arena, allowing for unparalleled reach and engagement. We believe this development will not on me drive significant revenue growth was actually P. But also set new standards in the last call Ms industry.
G L. We've picked up like almost as a significant opportunity to diversify our revenue stream and showcased product on velocity.
With T cell engaging manner.
I'll state this as the world how you attract e-commerce platform.
The idea stage or does that city to unveil this groundbreaking technology with melius ft user daily Big bulk chromite and incorporate bar restaurant to showcase its actually deep product and stuff.
Reaching.
Reaching a global audience like never before we also recently announced the launch of a much in a gene therapy that can turn a highly personalized E mail should deal for user collaborating with boost the region that full spectrum feedback I'll shut up.
Sure Colby Red bullish boost our style shift over.
Over 600000, but chin spending diverse industry.
And you can be redefined as equity offering you all share deal like Crazy.
But do you watch us we think the adversity, we think that's actually the user community.
But he was sure deal will undergo a sophisticated with sudden alization process, ensuring that reason might be especially feet user base being pocket that.
This will dry dusty user base grow Sydney's Piccadilly spend spread present in the region about generating I guess you'd meet their revenue pool.
This personalization, we would draw from user behavior spending Peyton.
Frances and transaction history, setting a new spin, therefore pocket marketing and brand New D V. Willie. Furthermore.
Restate that insight.
I live from do you say in the restaurant and preferences, we empower Tricia go a little further off the muskie's offering.
Driving additional revenue true target marketing campaigns and I spent that much on partnership.
Next for our second theater at pace in October we released page two points, you know whiskeys and upgrade to our transformation the digital and Irish management system.
Taste provide much at least for one stop management and automate the solution to the light piece, that's us, allowing food and beverage machine the streamlined their operations improving operation if he didn't see let's see.
<unk> cost savvy.
Particular, we believed taste provide a significant opportunity to drive further matching and probably grow at threshold grubhub.
<unk> is a major focus for us.
With increased user stickiness and gershwin.
The increase it became clear idea on the stove for that piece. That's neat. This upgrade is focused on increasing functionality.
Both the merchant and customer trust.
Global has to be focused on spending pace from Alicia and also two new market mix.
We should we are competent coupons zelle will help to do that.
In addition, the functionality will provide a complete solution offering including mature supply chain management and upstream, but chasing wish we aspect to it.
Took a breath Paul.
He will also provide a more user friendly interface for customer and much.
Larger quite a salt wish it but.
But the two our strategy to become a master franchise, so tricia go, but and to become the largest food and beverage chi without any physical brick and mortar outlet.
Under the subsidiary named fully we will manage this brand loyalty and related intellectual property to lease or does she our joint venture agreement with brands that can be secure partnership.
Just last week, we announced that I'll be used a popular Malaysia food and beverage business.
Brent is spending his supply chain will disappear is best solid colored path.
With the worlds largest communist stop this marked a significant milestone in diversifying the group product offering China's spending is distribution.
The first phase of expansion, we are focused on surprising the highest salary caliper tool.
The 50 Communist all in Malaysia subsequent face the encompass additional store location and introduce more products Sidney if I ignore the book, especially into the food and beverage market stepping into a new revenue stream to as they say never a convenience store.
So the brands we acquired it in truth Whitney, We will also provide food and beverage consulting including market and product optimization.
Let me start by chip monetization this unique business model a lot fresher grubhub, establishing the GB.
Allergy solution.
Our position in the food and beverage industry in South East Asia.
Can be strategy can regroup.
He was a base.
Adult into new restaurant.
Larry we are securing a new revenue stream for monthly licensing fees and staff and lastly is a complementary move.
Significant Ebola Monkey Smile.
Growth with us into that new market.
Well that's enough of a partnership with Malaysia, leading healthcare group U S. I I'll speak to the Provost the militia wellness, how kit tourism, Okay, It's actually Pete <unk>.
And e-commerce provider of health and wellness product, Oh, well, there, but you know as I said we.
We expect help Parisian and stem cell therapy with U S hospitals in the Indonesian Hong Kong and China market. We believe that this partnership with some additional revenue growth from new marketing and strategy alliances. We didn't talk about that's probably as an industry.
This partnership will deliver a substantial new revenue stream from wellness health care Tourism, Peckish and commission on the health screening.
Cruz itself.
The Upselling of Emoji health care products, and ethos stems shelf crappy offering pet Tricia grow, but we are putting a commission or <unk>.
Tricia Gabor.
Project, 100% overall gross profit growth every month from this partnership.
As I have discussed above we are consistently developing innovative products that can be a man hour sustained popularity of any city and taste.
As well and opening up new market opportunity in particular, we have cemented our leadership position in the a I try but e-commerce space.
With our major business peers as well as new market opportunity. We strongly believe we are well position to deliver innovation and growth.
I would like to discuss the operational highlights in the first quarter than the third default, which show how we are executing on our strategy and further growing our user base.
Dressed up a microsite plus really the number of adversity use the ASP.
Further dropped to over $2 six 6 million asphalt November 620 23.
In the first quarter, we successfully integrated the technology into our <unk>.
A user friendly chatbot power.
Paolo about what data analytics engine and truck GBT.
Yes, Jim.
Listen the light Chopper assistant, which we have named Georgia when last in August for Us actually to use the Georgia juice and deep learning to use the bus and the preferences.
References to recommend idea promotion and products for that.
This allows us to offer consumer a more personalized and pocket the U S B, though.
This functionality is.
But that's the dry user retention.
New customer to further grow revenue.
At the same time, allowing them a chance to capture I spent that data on user behavior and spending pay that's doing.
Do you think the pathos space, we gave us significant insight true market testing showcasing strong user engagement and interest in the new features.
These data will guide us in refining strategy, improving user experience and providing but shouldn't be worried but insight into user behavior and spending Peyton.
During the quarter.
The company is fine and letter of intent to form a e-commerce friendship, Indonesia, with harmony Boggy junior or SPD.
Under the agreement Tricia, although we hold a 70% may just the SPD and Tricia Bravo Rio Grande has should be SPD exclusive right to operate.
Dusty, Indonesia, but al I met a significant milestone of our expansion into the Indonesian market.
Our strategy to grow internationally.
Innovative lockup not so.
The venture will provide trade show grow but it is a priority.
The city with access to a status of true Honda matures and data off probably a million user within the soda industry in Indonesia.
The Indonesian market has a substation internet user base of 213 need it all off.
Population.
When these six media, providing a large opportunity for growing our total addressable market.
In July we announced a partnership agreement we've reached the outgrow Budd with Ebola.
Our travel platform as a new offering for travel in Malaysia.
<unk> globally, and we saw global real share ownership and profit from these corroborating should position the company to tap into the postpaid tablet traveler, Bob that's but that's the cards appears to depicted with the militia speech at the economy by 2025.
The offering will provide a high tech or the bulk hardest yet.
That kind of stuff just real time recommendations for travel brainy dayni slowly and seamless booking for fright hotel and car rental its also offer a viable transportation function to break our language barrier.
During the quarter Trisha <unk> signed an agreement with the militia with Ya Qin Association for pace to become a school.
First I recommend it but you definitely Irish management solution to each member in Malaysia.
Hey, this is now the M. A C E pay for food and beverage of choice and it is correct to men.
Remember to satisfy tastes machines.
The M. A C has over 500 mature member across Malaysia, representing more than 40 outlet our second proprietary solution, which we were proud to rush students piece goods and deep industry.
Hey, just a.
Partially default treasury go but to generate higher gross margins through increasing user engagement and stickiness.
<unk> is a product that much and has promised to rewrite fall yeah b since neat.
And then lastly, I need to stop using taste.
<unk> continued to receive positive feedback from user as well as improving the number of much as you were saying.
In particular observation that's the best suggests that much and who have adopt that taste has seen an increase in transaction and basket radio as well as an increase in user retention and stickiness.
That's continued and Hungary and Gershwin.
Platform achieve even with my bad my split in the pilot.
Patients achieved a notable one five time increase in the cross much anti Randy R. G. N V and continue to have a cool time growth in both that transaction and two five times increase in monthly Transfect. The user this showcase the platform for state Street in driving both user.
S. D V D transaction, what is N G M b.
Next we have also continued to secure a partnership during the first quarter Vishal to Vishal center to our growth and strategy marketing strategy.
In July we.
The partnership with the Ministry of domestic trip cost of Levy for the launch of the I guess Rama progress, which offer whereas a financially savvy initiative, reducing the parcel, leaving for lower income groups, including the Uva University stay with it for the program, especially the off of brackish off.
Essentially E voucher on the F a either Sasha spectral foot and B b.
These initiatives demonstrate that recipe, leading digital ecosystem and I've tried to put new user while also supporting this even bought then Sasha program.
Finally in September we collaborated with the broader Latin music, especially what you thought about to offer the first tests list ticketing platform powered or music festival in Malaysia power true diversity.
Michelle go but also chess pieces, whether it gets so high but I think our new red with new generation opportunity for the company as a result of the festival.
That's it and we see significant exposure during the U S. As a leader in ticketing solution as well and that's I think the new bucket for now.
We are pleased with the progress we.
We have met with a need to progress our strategy a priority.
The addressable market and develop innovative new revenue generation opportunity, we have established our leadership position in it.
E Commerce and continue to me, there's no way this service offering which increasing use of catchment I will now pass the call over to Michael to discuss our financial results in greater detail.
Thank you Sam and good morning, everyone. Today, I will review our financial results for the first quarter of fiscal year, two zero to four and at September 30.
023, compared to the same enthusiasm to do.
For the first quarter also revenue of $13 5 million compared to $15 6 million for the same period last year.
Revenue was down year over year, and we shifted our focus to growing our higher margin business channel such as taste.
Well, that's sticky revenue stream historically low margin we are focused on growing piece, which is some explaining also a new avenue for growth with a stronger margin.
In addition to focusing on higher margin revenue channel. We also intend to increase user engagement and stickiness and by providing our users with new products and.
And in the case of case for not that much and come to rely on for their business needs.
We believe these objectives will lead to increased revenue growth for the company in the long term.
Gross profit for the first part of fiscal two zero to fall was approximately 163000 up from 37000 compared to the same period last year.
Demonstrating that the initiative to grow gross profit.
That has already started.
Our net loss of approximately $2 1 million for the first quarter of fiscal year, two zero to four competitive across the elite three 7 million in the first quarter of fiscal year two zero.
As of September 30th two zero to tweak our cash balance was approximately $2 6 million.
Our cash balance of approximately 7 million as of September 30th zero to two.
As Sam mentioned that he has over $2 6 million registered users and over.
26, where do you sit in Milton as of November six.
Who's the little tweak.
Quarterly active user for the quarter ending.
But it's too slow to treat 187100 eat while paid user were up by four 7%.
Total of 133 million transaction, we're trying to fix that by our registered user over the current quarter and quarter to date of fiscal year, two zero to four we paid user.
<unk> three or more times in the quarter.
As we have mentioned, we remain laser focused on increasing gross profit and margin.
The measure we have introduced so far already working and we expect further improvement going forward as we continue to rollout.
And other revenue generating initiatives.
Now I will turn the call back to Sam to highlight our growth strategy. Thanks Micah.
<unk> global is pretty Swift progress, we have achieved over recent quarters to grow our thesis to talk I speak loudly.
And I'll focus on further expansion looking at executing on the fish.
Our growth grant of movie in truth into Asia, and Southeast Asia more broadly.
As I have discussed yeah, I guess I would ask that the people are new products to further expand our addressable market.
And the new markets altogether.
Shriver and health and wellness.
But after that.
We have recently launched partnership friendship and true.
Our domestic market of Malaysia, it's a growing population and Saudi.
Economy growth outlook.
Our broader expansion opportunity obviously, they think that we should include entry into other southeast Asian market.
Indonesia, Thailand, Vietnam, Japan reached much larger population and similar demographics.
Particularly Indonesia wish we'd have.
We pray that Turkey has spent time population Malaysia.
Sure I should go up or continue to be well, let you know.
What they are offering to complement our core basketball wish you my best try to circle, but as a leader.
But how much space.
Yeah, I'll talk of cost on our gross profit true he's got the deeper default.
User engagement through new product and service development.
We are confident we will generate higher profit margin. Thank.
Thank you again, everyone for joining us on todays call and thank you, particularly to our investors for their continued support we look forward to providing further updates. So this concludes our prepared remarks I'd now ask the operator to close the line.
I just thought we'd be.
Thank you Tom.
Ladies and gentlemen, thank you for joining us today I will now close the lines.
Okay.
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Yeah.
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